Retention Strategies in a Competitive Talent Market

Hey, Justin here, and welcome to Just Go Grind, a newsletter sharing the lessons, tactics, and stories of world-class founders! Premium subscribers get full access to this newsletter, exclusive events, event discounts, and more.

Today, we have a guest post from Bill Kerr, the founder and CEO of Athyna and author of Open Source CEO.

I’m finishing up the final edit on this post on Saturday morning before my weekend long run, which will be much shorter than those who are running the Los Angeles Marathon on Sunday. If that’s you, good luck!

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The latest episode, with Shawn Sheikh, one of the most under-the-radar investors who has done $300M+ in deal volume and is also a serial entrepreneur, is available on:

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• Rho - A business banking platform, purpose-built for startups.

• TRIBE - A community for fast growing early to mid-stage entrepreneurs.

Let’s dive in.

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Alright, let’s hand it over to Bill to share more about talent retention strategies!

Hiring great talent is one thing—keeping them is another.

With record job-hopping and a global talent shortage, retention has become the top challenge for companies worldwide. Employees are re-evaluating their priorities, and businesses that fail to adapt are seeing higher turnover than ever.

The numbers tell the story:

• The global quit rate remains high, with 41 percent of employees considering leaving their jobs in 2024.

• Ninety-four percent of employees say they would stay longer at a company that invests in their growth.

• The cost of replacing an employee is estimated at 50 to 200 percent of their annual salary due to hiring, training, and lost productivity.

So, how do you keep your best people? Let’s break down the most effective retention strategies used by today’s most successful companies.

1. FLEXIBILITY IS NO LONGER A PERK—IT'S EXPECTED

Remote work has changed employee expectations. Companies offering flexible work arrangements see 25 percent less turnover than those that don’t.

Companies that have successfully embraced flexibility include:

• Airbnb, which saw a 35 percent increase in job applications after introducing its remote work policy.

• Spotify, which adopted a “Work From Anywhere” model and reported reduced attrition while maintaining productivity.

• A couple of years ago, a UK trial of the four-day workweek found that participating companies kept the policy, citing higher retention and improved employee well-being.

Key takeaway: Give employees more control over their time. Offer remote work, flexible schedules, or compressed workweeks.

2. CAREER GROWTH: THE ULTIMATE RETENTION STRATEGY

If employees don’t see a future with you, they will find one elsewhere.

Successful companies prioritize growth by:

• Encouraging internal mobility like Microsoft does, that allows employees to shift roles within the company instead of leaving.

• Providing innovation opportunities. For example, Google’s “20 percent time” allows employees to work on passion projects, leading to innovations like Gmail.

Key takeaway: Implement mentorship programs, provide continuous learning opportunities, and create clear paths for promotion.

3. PAY AND PERKS MATTER—BUT SO DOES PURPOSE

Compensation is critical, but money alone won’t keep people. Employees want meaningful work.

• Seventy-five percent of Gen Z and Millennials say they would take a pay cut to work for a company aligned with their values.

• Patagonia’s mission by giving employees paid time off for environmental activism, strengthening loyalty and engagement.

Key takeaway: Define and communicate your company’s mission. Competitive salaries are important, but so is creating a workplace that aligns with employees' values.

4. MENTAL HEALTH AND WELL-BEING: A BUSINESS IMPERATIVE

Employee burnout is at an all-time high. Companies that invest in well-being see lower absenteeism, higher engagement, and stronger retention.

Companies leading in this area include:

• Cisco, which expanded mental health coverage for employees and their families, leading to higher job satisfaction.

• Dropbox, which adopted an asynchronous work schedule to reduce unnecessary meetings and improve work-life balance.

Key takeaway: Offer mental health resources, implement no-meeting days, and create a workplace that values work-life balance.

5. RECOGNITION AND CULTURE: THE SMALL THINGS MAKE A BIG IMPACT

Sixty-nine percent of employees say they would work harder if they felt more appreciated.

Companies with strong peer recognition programs see 31 percent lower voluntary turnover. Recognizing employees' contributions—both big and small—reinforces a positive workplace culture.

Key takeaway: Build a culture of appreciation. Publicly recognize employees, offer performance-based incentives, and foster strong team connections.

HOW ATHYNA RETAINS TOP TALENT

At Athyna, we practice what we preach when it comes to retention. Here’s what works for us:

• Remote-First Culture – Employees can work from anywhere with flexible schedules.

• Continuous Learning – We cover online courses, certifications, and internal mentorship opportunities.

• Wellness First – Mental health days, wellness stipends, and work-life balance initiatives are core to our company culture.

• Transparency and Feedback – We maintain open channels for feedback, hold regular check-ins, and encourage direct communication.

• Recognition and Community – Our team celebrates wins, gives shout-outs, and hosts to maintain strong connections.

FINAL THOUGHTS: RETENTION IS THE NEW HIRING

Hiring great talent is only half the battle. Keeping them is where the real challenge lies.

The companies winning in 2024 aren’t just offering bigger salaries—they are creating workplaces where people want to stay.

Look at your retention strategies today. What’s working? What’s not? Small changes can have a massive impact on engagement, productivity, and long-term success.

At Athyna, we help companies build and retain world-class remote teams.

Learn how we can support your hiring and retention efforts here.

In the past two years, we’ve published dozens of deep dives on world-class founders, sharing how they built their companies. These typically take 20-30 hours to research and write. The most recent ones are below:

Best,
Justin

Founder of Just Go Grind

P.S. Hiring? Check out the team at Athyna